Source: Chinese Embassy in the UK
Original title: Ambassador Liu Xiaoming’s keynote speech at the Breakfast Meeting of the Walbrook Club in the UK: "Enhance mutual trust, consolidate the cornerstone, and create a better tomorrow together"
Dear Mr. Palumbo, Executive Director of the Walbrook Club,
Ladies and gentlemen:
I am very happy to attend the Breakfast Meeting of the Walbrook Club again. In 2013, when I attended the first breakfast meeting of the Wallbrook Club, I introduced to everyone the development of China's financial industry. Seven years have passed, the world has changed a lot, and China and Britain have also changed a lot. Over the past seven years, China-UK relations have experienced ups and downs, and the financial cooperation between the two countries has become increasingly close, forming a mutually beneficial and win-win pattern of "you have me, I have you".
In recent times, all sectors of the UK have paid close attention to the Hong Kong National Security Law. This Monday, I held a press conference on China and foreign countries. Some are worried about the future development of Hong Kong, while others are worried about the prospects of China-UK relations. Today, in response to these concerns, I would like to focus on three issues: How to correctly understand the Hong Kong National Security Law? How do you view the development prospects of Hong Kong? What role can the British financial community play in promoting Sino-UK relations and Hong Kong's prosperity and stability?
Regarding the first question, how to correctly understand the Hong Kong National Security Law? I think we can start from the following four angles:
First of all, the Hong Kong National Security Law is a "mile mark" in consolidating and improving the "one country, two systems" system.
The original aspiration and mission of "one country, two systems" is to safeguard national sovereignty, unity and territorial integrity and maintain Hong Kong's long-term prosperity and stability. "One country" is the premise and basis for implementing the "two systems". The Hong Kong National Security Law clearly stated that it will unswervingly and fully and accurately implement the "one country, two systems", "Hong Kong people governing Hong Kong", and a high degree of autonomy. The starting point and end point of the National Security Law is to provide solid legal support and institutional guarantees for "one country, two systems". While adhering to the foundation of "one country", while taking into account the differences in "two systems", and promoting the cause of "one country, two systems" to move forward in the right direction. Since June last year, Hong Kong has suffered a phenomenon of damaging the "one country, two systems". The National Security Law is to defend the authority of "one country", and ultimately to uphold and improve the "one country, two systems", rather than changing the "one country, two systems".
Second, the Hong Kong National Security Law is a "breakwater" to ensure long-term stability and prosperity and stability in Hong Kong.
Only when national security is guaranteed can society be stable and orderly. The most prominent problem facing Hong Kong is that national security has been in a "unpreventable" state for a long time. Especially since last year's "Amendment Bill Storm", anti-China and Hong Kong rioters have continued to create various violent activities, which has severely damaged Hong Kong's rule of law and economy and people's livelihood. The promulgation and implementation of the Hong Kong National Security Law has solved relevant legal loopholes and institutional shortcomings, built a strong barrier for Hong Kong to safeguard national security, and made Hong Kong more stable, safer and more prosperous.
Third, the Hong Kong National Security Law is the "guardian saint" that protects the legitimate rights and freedoms of the Hong Kong people.
National Security Law clearly stipulates that the Hong Kong Special Administrative Region should respect and protect human rights and protect the rights and freedoms of Hong Kong residents in accordance with the Basic Law and the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights applicable to relevant provisions of Hong Kong. At the same time, the National Security Law adheres to the principle of "punishing the very small number and protecting the majority", and regulates four types of crimes in accordance with the law, subverting the state power, organizing and carrying out terrorist activities, and colluding with foreign or overseas forces to endanger national security, so that the rights and freedoms enjoyed by residents of the SAR can be better exercised in a safe environment.
Fourth, the Hong Kong National Security Law is a "protective umbrella" to protect the legitimate interests of foreign personnel and enterprises in Hong Kong.
23 years since the return of Hong Kong, it has fully utilized its unique advantages and attracted enterprises and personnel from all over the world to go to Hong Kong to settle down. However, the "Amendment storm" seriously damaged Hong Kong's business environment, causing Hong Kong's international rating to decline, damaged international image, and lost investor confidence.The implementation of the Hong Kong National Security Law will eliminate local and foreign business people's concerns about Hong Kong social chaos such as "violent terrorism", and will better protect the security and legitimate rights and interests of foreign citizens and investors in Hong Kong, ensure the operation and business exchanges of enterprises from all countries in accordance with the law, create a more sound and more stable and reliable business environment for foreign investors, and consolidate and enhance Hong Kong's status as an international financial, trade and shipping center. British-funded enterprises such as HSBC , Standard Chartered , Swire, Jardinet and other British-funded enterprises fully reflect the strong willingness of enterprises from all countries, including the United Kingdom, to seek stability and security.
Regarding the second question, how do you view the development prospects of Hong Kong after the implementation of the Hong Kong National Security Law? I think there are "three unchanges".
First of all, Hong Kong's important position as a global financial center will not change.
Since returning to the motherland, Hong Kong has been one of the freest, most open, most prosperous and most dynamic regions in the world. For many years, Hong Kong has occupied a unique and important position in the international financial market as one of the global financial centers. As of the end of 2019, the total market value of Hong Kong's stock market was close to US$5 trillion, second only to New York, Shanghai and Tokyo. In 2019, the Hong Kong stock market's initial public offering (IPO) reached US$40 billion, ranking first in the world. Hong Kong is Asia's largest international fund management center and international private wealth management center, with asset management exceeding US$3 trillion. Hong Kong is also an important international banking center. More than 70 of the top 100 banks in the world operate in Hong Kong, with assets exceeding US$3 trillion.
Hong Kong has the unique advantage of "'one country, two systems', connecting China and the West" that other international financial centers do not have. Hong Kong also has a good financial ecosystem composed of various factors such as law, tax system, talent, services, and supervision. This system has withstood many shocks such as the Asian financial crisis in 1997 and the international financial crisis in 2008, and has demonstrated strong resilience, competitiveness and innovation. The Hong Kong National Security Law will fill the loopholes in Hong Kong's legal security, improve and enhance Hong Kong's financial ecosystem, and enhance the international community's confidence in the development of Hong Kong's financial market. Hong Kong's position as a financial center will be more consolidated, safer and more attractive.
Second, Hong Kong will not change as an important bridge for China's opening up to the outside world.
Hong Kong's biggest advantage is that it is "backed by the mainland of the motherland and facing the global market." Looking back on China's more than 40 years of reform and opening up, from the early entry of international funds into the Chinese market, to the recent years when Chinese capital went abroad, Hong Kong has played an important role in participating in the two-way opening up of the country. In this process, Hong Kong has gradually established its status as an international finance, shipping, trade center and international aviation hub. In recent years, a large amount of foreign investment in China has been carried out through Hong Kong. Hong Kong occupies an important position in mainland China's foreign trade, and in 2019, Hong Kong was the third largest trading partner of mainland China. As China further deepens reform and expands opening up, including the "Shanghai-Hong Kong Stock Connect", "Shenzhen-Hong Kong Stock Connect" and "Bond Connect" are successively launched, and the QFII and RQFII quota restrictions are lifted, Hong Kong will continue to enjoy the dividends of China's development and opening up to the outside world. The channels for connectivity between Hong Kong and the Mainland are constantly expanding and enriching, and Hong Kong's role as an important bridge for China's opening up will only be further strengthened and will not be weakened.
It is particularly worth mentioning that the construction of the Guangdong-Hong Kong-Macao Greater Bay Area will provide important new opportunities for comprehensively promoting mutually beneficial cooperation between the mainland and Hong Kong and Macao and supporting Hong Kong and Macao to integrate into the overall national development. The Guangdong-Hong Kong-Macao Greater Bay Area is one of the most open and economically vibrant regions in China. It has a population of 66 million, an area of 56,000 square kilometers, a GDP of more than one trillion US dollars, a strong industrial foundation, active scientific and technological innovation, and broad development prospects. The Greater Bay Area can not only find new growth points for Hong Kong's economy and promote diversified industrial development, but also provide Hong Kong residents with a broader living and development space, including providing more employment opportunities for the vast number of young people in Hong Kong. In the future, the Greater Bay Area will increasingly become a vast hinterland for Hong Kong's development, and also provide strong support for Hong Kong's position as an important platform and hub connecting the domestic and international markets.
Third, Hong Kong, as an important link in Sino-UK financial cooperation, will not change.
Hong Kong is the base and springboard for many British financial institutions to deploy the Chinese market and deepen cooperation with China. Looking ahead, Hong Kong has more potential to play an important role in the development of financial cooperation between China and the UK:
First, promote the internationalization of the RMB.
London is the world's largest RMB offshore foreign exchange trading center and the second largest RMB offshore clearing center, while Hong Kong is the world's largest RMB offshore clearing center and the second largest RMB offshore foreign exchange trading center. Hong Kong and London have advantages in each other, and can further unite strongly, promote innovation in RMB financial products, and further enhance their respective leading position in the process of RMB internationalization.
The second is the "Belt and Road" cooperation.
China and the UK are natural partners in the "Belt and Road" cooperation. Hong Kong has a unique position in the "Belt and Road" and has professional services, financial experience and business network. In the future, China and the UK can rely on the two financial centers of Hong Kong and London to strengthen cooperation in infrastructure, investment and financing, insurance and third-party markets under the framework of the "Belt and Road" to benefit more economic development and people's livelihood improvement in countries along the route.
The third is cooperation in financial technology and green finance.
Hong Kong and London are building financial technology centers and developing green financial markets. Next year, China and the UK will also hold the 15th Conference of the Parties to the Convention on Biological Diversity (COP15) and the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26). China and the UK can leverage the innovative advantages of Hong Kong and London, strengthen cooperation in areas such as financial technology and green finance, and jointly create new growth points.
Regarding the third question, what role can British financial figures play in promoting Sino-UK relations and Hong Kong's prosperity and stability under the new situation.
I have three hopes for this, I hope you:
First, be a supporter of Hong Kong's prosperity and stability.
The UK has more than 300,000 citizens and more than 700 companies in Hong Kong. A prosperous and stable Hong Kong is not only in China's interests, but also in the UK's interests. I hope that British financial figures will view the Hong Kong National Security Law objectively, rationally and fairly, strengthen their confidence in Hong Kong's future, and contribute positive energy to Hong Kong's return to the track of prosperity, stability and security.
The second is to be a promoter of Sino-UK cooperation.
Since the return of Hong Kong, it has become an important bridge and link in China-UK relations, and has made positive contributions to the development of China-UK relations. With the implementation of the Hong Kong National Security Law. I hope everyone will seize the opportunity of Hong Kong from chaos to governance, seize the opportunity of economic recovery between China and the UK in the "post-epidemic era", give full play to their respective advantages, promote China-UK cooperation in a practical and deeper way, and better achieve mutual benefit and win-win results.
Third, it is a maintainer of Sino-UK relations.
Since Britain was the first to recognize the New China among Western powers 70 years ago, Sino-British relations have experienced ups and downs, but have always maintained their direction. The most important experience is mutual respect: mutual respect and territorial integrity, mutual non-interference in internal affairs, equality and mutual benefit. These are not only the basic principles established in the UN Charter of and the basic norms of international relations, but also important principles established in the China-UK communiqué for the establishment of diplomatic relations. 70 years of practice have shown that as long as these principles are followed, Sino-UK relations will develop forward, and will suffer setbacks or even regress. Now, China-UK relations are once again at an important juncture. I hope that knowledgeable people in the UK, including those in the financial industry, will focus on the overall situation of China-UK relations, give full play to their respective influence, and contribute to overcoming current difficulties and challenges and promoting the healthy and stable development of China-UK relations.
Ladies and gentlemen,
Ancient Chinese people said: "Those who seek the elders of trees must strengthen their roots." There is also a saying in the UK: "No good building without a good foundation." I firmly believe that as long as the Hong Kong National Security Law is implemented smoothly, Hong Kong will be able to maintain long-term prosperity and stability; as long as the basic norms of international relations are followed, China-UK relations will be able to move forward steadily on the right track. Let us join hands and work together!
Thank you!
I would like to answer your questions below.
On July 9, 2020, Ambassador Liu Xiaoming was invited to attend the online breakfast meeting held by the Wallbrook Club in the UK and delivered the above keynote speech. After the speech, Ambassador Liu also answered questions from participants about the Hong Kong National Security Law, Huawei, Xinjiang-related, China-US, China-Russia relations, and the impact of the epidemic on Sino-UK education exchanges and cooperation. Wallbrook Club Executive Director Palumbo and about 70 club members participated in the event.
Walbrook Club was founded in 2000 and mainly has senior executives in the UK's financial and business circles. The club held breakfast meetings from time to time and invited former British Prime Minister Major , former Prime Minister Cameron , British government cabinet ministers, foreign envoys to the UK, as well as business leaders, and well-known people from all walks of life to deliver speeches.
